Final answer:
Merit raises are the most effective compensation structure for enhancing collaboration among employees since they can be tailored to recognize and encourage teamwork, unlike wage dividends, cost of living raises, or increased commissions.
Step-by-step explanation:
The HR manager of Teresa's RV and Boats is seeking to enhance collaboration among employees by considering changes to the compensation structure. Among the options provided, merit raises appear to be the most effective method for promoting collaboration. Merit raises reward individual employees for their performance, which can include how well they collaborate with others. Unlike a wage dividend, which is typically tied to company-wide profits, or a cost of living raise, which adjusts for inflation and doesn't necessarily incentivize collaboration, merit raises can be tailored to recognize and encourage collaborative behavior. Increased commission, while incentivizing sales, might not inherently encourage teamwork as it often rewards individual sales achievements.